There is room for New Zealand Dollar (NZD) to edge above 0.6075 against US Dollar (USD); the major resistance at 0.6090 still appears to be out of reach. In the longer run, NZD is likely to test the 0.6090 level; it is too early to determine if it can break clearly above this level, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Major resistance at 0.6090 still appears to be out of reach
24-HOUR VIEW: “NZD closed at 0.6036 two days ago. Yesterday, it rose sharply in the early Asian session, and we indicated that ‘further advance appears likely, but based on the current momentum, the major resistance at 0.6090 is probably out of reach.’ We noted that ‘there is another resistance level at 0.6075.’ NZD subsequently rose to a high of 0.6075 before closing at 0.6058 (+0.34%). Although conditions are overbought, there is room for NZD to edge above 0.6075. The major resistance at 0.6090 is still probably out of reach. On the downside, support levels are at 0.6045 and 0.6030.”
1-3 WEEKS VIEW: “On Tuesday (24 Jun, spot at 0.5995), we indicated that the recent ‘sharp but short-lived swings have resulted in a mixed outlook.’ We expected NZD to ‘trade in a range of 0.5900/0.6090 for now.’ Yesterday (26 Jun, spot at 0.6055), we indicated that NZD ‘is likely to test the 0.6090, but it is too early to determine if it can break clearly above this level.’ NZD then rose to a high of 0.6075. Upward momentum has increased further, albeit not by much. For the time being, we continue to hold the same view. On the downside, should NZD break below 0.6000 (‘strong support’ level was at 0.5960 yesterday), it would indicate that 0.6090 is out of reach.”
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